Worm In The Apple - Live UK Election Debate Coverage!
Updated
A good time to update for those tracking the GBPJPY position I posted yesterday will remember the timely entry, those unfamiliar with the chart can see here:
Risk-off is entering back into the picture and JPY is finding a strong bid, with Pound in election mode momentum is not particularly impressive to the upside. A Conservative majority seems a done deal now, Brexit is coming and no one wants to get long Pound at these levels with a disaster on the horizon.
For the flows you can see how those who go against the grain here will get caught with pants down. The market can move with force with direction shifted to sell. Under normal circumstances this would be a good level to buy, however given the action at the highs it is a terrible position. Expecting bears to chase it out to the downside over the coming sessions.
Our objective here is to trap those buying expecting continuation, the pendulum will swing back to the negative side after the Debate is cleared tonight. Bears will have to cover quickly as it will move like a hot knife and butter, those caught up at the highs buying are already struggling. Ideally we want the sellers to hold the buyers stops and trigger further momentum, this is the market telling us what direction is the right direction.
An interesting graphic I shared here last week:
I recommended a short in the Tradingview Portfolio yesterday with the People vs Establishment narrative brewing, sentiment is quite negative and continuing to create flows into risk-off assets. Today you are starting to see JPY and Gold outperform, you will see the same thing in sentiment continue to gain momentum over the coming sessions.
Continuing to add shorts at 140.50...In an ideal world I would like to see offers come in here and on the break we need to see the stops not hold at 140.25. Market is going to keep searching for stops to the downside and here looking to target the 139.xx handle for my initial targets. The aim of this post is to highlight a textbook case of "biting the apple that has a worm".
Good luck all those on the sell side for tonight's debate. I will be covering the flows live in the comments section, as usual jump in at any time with any questions!
Risk-off is entering back into the picture and JPY is finding a strong bid, with Pound in election mode momentum is not particularly impressive to the upside. A Conservative majority seems a done deal now, Brexit is coming and no one wants to get long Pound at these levels with a disaster on the horizon.
For the flows you can see how those who go against the grain here will get caught with pants down. The market can move with force with direction shifted to sell. Under normal circumstances this would be a good level to buy, however given the action at the highs it is a terrible position. Expecting bears to chase it out to the downside over the coming sessions.
Our objective here is to trap those buying expecting continuation, the pendulum will swing back to the negative side after the Debate is cleared tonight. Bears will have to cover quickly as it will move like a hot knife and butter, those caught up at the highs buying are already struggling. Ideally we want the sellers to hold the buyers stops and trigger further momentum, this is the market telling us what direction is the right direction.
An interesting graphic I shared here last week:
I recommended a short in the Tradingview Portfolio yesterday with the People vs Establishment narrative brewing, sentiment is quite negative and continuing to create flows into risk-off assets. Today you are starting to see JPY and Gold outperform, you will see the same thing in sentiment continue to gain momentum over the coming sessions.
Continuing to add shorts at 140.50...In an ideal world I would like to see offers come in here and on the break we need to see the stops not hold at 140.25. Market is going to keep searching for stops to the downside and here looking to target the 139.xx handle for my initial targets. The aim of this post is to highlight a textbook case of "biting the apple that has a worm".
Good luck all those on the sell side for tonight's debate. I will be covering the flows live in the comments section, as usual jump in at any time with any questions!
Trade active
Note
Simple flows in GBPUSD also 
Trade closed: target reached
A textbook case of "The Rotten Apple"
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.